Global Financial Market Outlook and Investment Strategy Announced
Preference for 5-7 Year USD-Denominated Medium-Term Bonds
Increased Allocation to Emerging Market Local Currency Bonds
SC First Bank announced on June 30 that it has released the "2025 Second Half Global Financial Market Outlook and Investment Strategy Report" for its wealth management (WM) clients.
Global investment strategy experts from SC First Bank and SC Group have presented this year's investment theme as 'Positioning for a Weak Dollar: Expanding Opportunities.' They offered a positive outlook for the global economy and corporate earnings in the second half of the year, but also predicted that market volatility will be inevitable. Reflecting the ongoing shift toward accommodative monetary policy in major economies and the possibility of a soft landing for the US economy, they expect the weak dollar trend to continue. As a result, they assessed that a favorable environment will be created for risk assets overall.
The report divides its global investment strategies for the second half of the year?based on the weak dollar trend?into three main recommendations: increasing the allocation to global equities focused on Asia (excluding Japan), favoring USD-denominated medium-term bonds with maturities of 5 to 7 years, and expanding the allocation to emerging market (EM) local currency bonds. On the other hand, it advised against excessive allocation to long-term bonds due to risks related to inflation and fiscal deficits. Gold and alternative investment strategies were also suggested as effective means of diversification to respond to market volatility.
In particular, while maintaining a positive outlook for the economy and corporate performance, the report emphasized the need to pay attention to certain risk factors, such as geopolitical tensions, trade uncertainties, and weakening real economic indicators. The analysis especially noted that conflicts in the Middle East could affect energy prices in the short term and should be closely monitored.
SC Group sets its core investment strategy themes and regularly announces financial market outlooks and investment strategies based on its global house view every half-year. The group also holds seminars to share these strategies directly with clients. Starting July 17, SC First Bank will invite major clients in five key cities nationwide to its second-half "Global Market Outlook Seminar."
Sachin Bhambhani, Head of Affluent and Wealth Management at SC First Bank (Deputy CEO), stated, "A weak dollar could be a key driver that increases the likelihood of global capital flows expanding beyond specific asset classes toward a wider range of opportunities," adding, "Rather than focusing solely on specific assets, it is important to strategically leverage the expanded universe of opportunities through a diversified portfolio."
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